San Miguel Food and Beverage Inc. projects better performance in the second half of the year as raw material prices continue to drop.
Francisco Alejo III, COO for food, said as the market continues to open and consumers spend, sales rise.
“Things are actually looking up for the food group. And we like to assure the stockholders have a better second half and a good year for 2023,” Alejo said at the annual meeting of stockholders on Wednesday.
“For the balance of the year, we expect and we’re seeing prices of raw materials, especially commodities, start going down,” he said.
Alejo noted some of SMFB’s raw materials proved cheaper than in previous months and project this to continue, resulting in significantly better profitability compared to its first half performance.
Alejo also said the newly built plants for animal feeds, poultry processing plants and processed meats are delivering efficiencies that result in better yield and margins.
In the first quarter, SMFB maintained its growth momentum despite inflationary pressure, excise tax increases and continuing geopolitical uncertainties, among other headwinds, SMFB president and CEO Ramon S. Ang said.
